@article{Heterogeneous:4358,
      recid = {4358},
      author = {Guo, Xing},
      title = {Data and Code for "Reassessing the Relevance of Financial  Shocks in an Estimated Heterogeneous Firm Model"},
      publisher = {American Economic Association},
      address = {2024-07-01},
      abstract = {I study the transmission of financial shocks using an  estimated heterogeneous firm model. Following a  contractionary financial shock, financially constrained  firms cut investment, but unconstrained firms increase  investment due to the lower capital price and interest  rate. After matching the empirical dynamics of prices and  the price elasticity of investment, I find a limited role  of the unconstrained firms’ response in dampening the  aggregate investment decline. Non-financial capital  adjustment friction is the key to generating this result.  Without the capital adjustment friction, unconstrained  firms’ investment becomes unrealistically sensitive to  prices, and the model would understate the financial  shocks’ aggregate relevance. <p> <p> Data and code for  peer-reviewed article published in American Economic  Journal: Macroeconomics. When citing this dataset, please  also cite the associated article. A sample Publication  Citation is provided below.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/4358},
      doi = {https://doi.org/10.3886/E191747V1},
}